Siemens Energy has unveiled sweeping changes to its struggling wind division, including job cuts and a new CEO, as the company looks to tighten its grip on the loss-making business. The announcement came alongside a raised full-year outlook and a fourfold increase in quarterly operating profit, causing the company’s shares to surge 11.5% on the news.
The turnaround of the wind business remains a key focus for Siemens Energy, and the changes are aimed at reducing complexity and creating a more focused business. As part of the restructuring, Vinod Philip will become the new CEO of the Siemens Gamesa wind turbine unit, replacing Jochen Eickholt, who led the company through its most turbulent period since its creation in 2017.
Siemens Energy also plans to resume sales of revised versions of its 4.X turbines in Europe by the end of September, with the 5.X platform expected to re-enter the market next year. The company’s onshore business will be focused on two main markets, Europe and the United States, as part of a more streamlined approach.
Despite the challenges, Siemens Energy remains committed to both onshore and offshore wind, allaying concerns that it may sell or shut down parts of the business. The strong demand for power grid equipment has also contributed to the company’s improved performance, with Siemens Energy raising its outlook for sales, operating profit, and free cash flow in 2024.